TPK shares get boost on news of company's upbeat outlook on Q2

TAIPEI -- Shares of TPK Holding Co. (宸鴻) moved higher Friday morning after the touch panel maker gave a positive sales forecast for the second quarter, citing an increase in wearable device applications, dealers said.

Buying also reflected reduced price competition in the global touch panel market, which will cut downward risks on TPK's earnings, they said.

As of 11:04 a.m., shares of TPK had added 1.48 percent to NT$240.50 (US$8.02), with 5.16 million shares changing hands, extending from a 0.63 percent increase seen a session earlier.

The weighted index on the Taiwan Stock Exchange was down 0.07 percent at 9,102.76.

"Investors are buying on the hope that wearable devices will give TPK's earnings a boost because of widespread speculation that the touch panel supplier has secured orders from Apple for iWatch production," Ta Ching Securities analyst Andy Hsu said.

At the company's annual shareholders meeting on Thursday, TPK Chairman Chiang Chao-juei declined to comment on the market speculation about Apple orders.

But he told shareholders that two of its wearable device customers have launched production in the first half of this year, and an additional six will kick off production in the second half.

Chiang said that in addition to wearable devices, TPK has secured orders for automotive touch panels from customers from Japan, Germany and France, leaving him upbeat about the company's shipment outlook for the second half of this year.